Sustainability Report 2020 Getting Started

1 Sustainability Report 2020. Getting Started 2. We energize society Medium impact High impact Siemens Energy Sustainability Report 2020. Low impact Siemens Energy aligns with the United Nations' Sustainable Development Goals (SDGs). In order to ensure maximum effec- tiveness, we have prioritized five SDGs to which we have the highest and most direct impact. Read more on page 13. Content 1 The company 6 Foreword 8 Siemens Energy at a glance 10 Strategic focus 2 Decarbonizing our business 18 Customers and innovation 24 Decarbonization 3 Responsible operations 30 Conservation of resources 34 Product stewardship 37 Sustainable supply chain management 41 Anti-corruption and integrity 47 Human rights 51 Working at Siemens Energy 58 Occupational health and safety 62 Societal engagement 4 Annex 68 The company 68 Reporting method 69 Environmental Portfolio reporting principles 73 Task Force on

2 Climate-Related Financial Disclosures (TCFD). 75 UN Global Compact communication on progress 78 Independent auditor's limited assurance Report Reference logic Reference within the Report Link to an external reference The company 6 Foreword 8 Siemens Energy at a glance 10 Strategic focus 6 The company Foreword Siemens Energy Sustainability Report 2020. energy and electricity are critical for societies throughout the world. However, climate change, growing populations and digitalization are changing the boundary conditions for us, for our customers and for the entire energy industry.

3 We are operating in a rapidly changing market that is pushing for new solutions, new technologies, and new business models. As the world population grows, access to electricity to ensure the highest impact, we are focusing on spreads and the industry is further electrified, we SDG 7 Affordable and Clean Energy , SDG 13 Climate expect the global demand for electricity to increase by Action , SDG 8 Decent Work and Economic Growth , around 50 percent by 2040. How can the energy SDG 9 Industry, Innovation and Infrastructure and industry meet this growing demand while protecting SDG 5 Gender Equality.

4 We are committed to meeting the climate? The aspiration of our new company, environmental, social and g overnance (ESG) standards Siemens Energy AG, is to energize society in a sustain- and expectations. Siemens Energy actively endorses able and efficient way, based on the right products, the Paris Agreement on climate change and supports solutions and services. ambitious political programs such as the European Green Deal and the EU hydrogen strategy. This document, the first independent Sustainability Report prepared by Siemens Energy AG, shows that Across our various businesses and along the entire Sustainability is an integral part of our Energy of energy value chain, we help our customers to adopt Tomorrow transformation program that will enable more sustainable energy technologies and solutions.

5 Us to make our vision reality: We want to create the Some examples: We build hybrid power plants that most valued energy technology company in the world combine generation technologies with battery storage;. and be the Sustainability leader in our industry. Sustain- we deliver gas turbines that can already operate on up ability is firmly anchored in all our actions and as to 60 percent hydrogen; we provide transmission President and CEO of Siemens Energy, I have taken equipment that avoids the use of SF6, a very harmful over responsibility as Chief Sustainability Officer to greenhouse gas; we offer hydrogen electrolyzers, underscore this commitment.

6 The 17 Sustainable which are critical for developing a sustainable green Development Goals (SDGs) set out in the United Nations' hydrogen economy; and Siemens Gamesa Renewable 2030 Agenda guide us in our plans and actions. While Energy produces wind turbines that generate electricity Siemens Energy contributes to achieving all 17 SDGs from both onshore and offshore wind energy. The company 7. We believe that innovative technologies are the key to internal regulations. Only clean business is Siemens combating climate change now and in the future.

7 Energy business. Beyond the boundaries of our And these innovations require thinking and working company, we actively drive the implementation of in ecosystems with customers and partners. At the Collective Action and aim to develop projects with same time, we believe that interim solutions based on partners in industry, the public sector, non-govern- highly efficient conventional solutions can and should mental organizations, international organizations and contribute to more sustainable energy systems than civil society. While this includes the joint fight against we have today.

8 The balance of availability, sustain- corruption, it also goes far beyond that: Our ultimate ability and affordability of electrical energy will differ goal is to create fair market conditions and establish a Siemens Energy Sustainability Report 2020. in every region of the world, and diverse approaches level playing field for all market participants, and will be required to steer societies toward a sustainable promote integrity in business transactions. energy world. 2020 has been a year full of many daunting chal- We invest around one billion euros per year in research lenges above all the COVID-19 pandemic.

9 Under and development and are increasing our focus on sus- these extremely difficult conditions, we continued to tainable technologies and services. All these efforts support our customers and further strengthen our naturally begin right at home, as we make our own innovative power by tapping into the potential of dig- operations more sustainable. We plan to switch our italization. We were able to keep the lights on in close own power consumption to 100 percent green elec- collaboration with our customers and partners. tricity by 2023, and are aiming at making our company operations climate-neutral by 2030.

10 Siemens Energy is a new company, yet one drawing on a long and rich tradition dating back to 1866, At Siemens Energy we are also committed to the Ten when Werner von Siemens discovered the dynamo - Principles of the United Nations Global Compact and electric principle and laid the foundation for today's will provide annual information on our progress as part ubiquitous electrification. Our aim is to continue this of our Sustainability reporting. tradition in order to make our world a better and more sustainable place. In all these activities, the people who work for Siemens Energy are especially important.